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An interest rate peg might be better than you think

Active interest rate policy is frequently recommended based on its merits in reducing macroeconomic volatility and being a simple device. Yet, it might be outperformed by an even simpler policy. A peg can be welfare-enhancing and can uniquely be implemented.
Year of publication:
2009
Authors: Hörmann, Markus ; Schabert, Andreas
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 2, p. 156-158
Publisher: Elsevier
Keywords: Interest rate rules Welfare losses Equilibrium determinacy Fundamental solutions
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008474048
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